Company overpaid millions by state

A company aimed at creating employment opportunities and getting people back into work is being investigated for cooking its books.

14.03.2012

(JB) A company aimed at creating employment opportunities and getting people back into work is being investigated for cooking its books.

Following a routine audit, government-funded ProActif was allegedly accused of inflating its charges to the tune of 2.8 million euros.

The firm, which receives three quarters of its funding from the state, reportedly falsified statements in its accounts from 2005 to 2006.

The claims emerged via Luxembourg radio station 100.7 on Thursday morning. It said that the falsified bills were for cleaning services from an external provider, a service which was actually performed by association employees.

The accounts also show that ProActif double charged for children's meals in its nurseries, receiving payment from both parents and the government.

ProActif is now said to owe the state 2.4 million euros for overpayments, bringing the firm into debts of one million euros.

The audit findings are expected to be discussed in the Chambre des deputés on Friday.

Employment minister Nicolas Schmit refused to comment until after the discussion.